Investing in ICICI Prudential Maximiser V

I am 40, and I am planning to invest in mutual funds. My financial advisor has advised me to invest ₹5,000 on a monthly basis in a mutual fund scheme called ICICI Prudential Maximiser V. Please tell me whether I should invest in this fund.
- Yogesh Borkar

Your advisor has suggested an insurance product for investment. You should never buy an insurance product for investment purpose, as it is not a great idea to mix insurance and investment. Insurance products with investment element fail to do justice to both insurance and investment needs. They don't offer meaningful insurance cover and they also don't invest the entire money as a part of it goes towards providing the insurance cover.

Always buy a term plan for your life insurance needs. They are the cheapest and most efficient way to buy a life cover. And opt for mutual funds for your investment needs.

If you are a newcomer to the stock market, invest in a top-rated a balanced scheme to build wealth for your long-term goals that are at least five years away. Balanced schemes are ideal for conservative investors as they invest in a mix of equity and debt.

Here is a list of top-rated balanced schemes: Click Here

This article was originally published on September 29, 2015.